A parliamentary committee has warned that India’s heavy dependence on coal for electricity could slow economic growth, push up power prices and even weaken its climate commitments.
In a report tabled in Parliament, the Committee on Estimates, headed by BJP MP Sanjay Jaiswal, said reliable and affordable electricity is essential if India is to reach developed economy status by 2047.
Coal accounts for 46.2 per cent of the country’s installed capacity, compared with 44.9 per cent from renewable sources, including 20.6 per cent from solar. The committee said the dominance of coal has raised costs, contributed to pollution and placed pressure on industry, households and farmers. High tariffs have affected export competitiveness and added to inflation, while long-standing subsidies have strained state budgets and weakened distribution companies.
The panel reviewed the performance of two major schemes: PM-KUSUM for the agriculture sector and the PM Surya Ghar Muft Bijli Yojana for households. It supported their objectives, but said implementation gaps must be addressed.
PM-KUSUM
Launched in 2019, PM-KUSUM aims to expand solar use in agriculture through decentralised power plants, standalone pumps and the solarisation of grid-connected pumps. The committee found weak progress in Component A, which targets 10,000 MW of ground-mounted solar plants by 2026. Only 641 MW had been installed by July 2025. It attributed delays to financing constraints, COVID-era disruptions, slow state approvals and poor coordination.
Sanctioned capacity under Component A is concentrated in 13 states, with Rajasthan receiving the largest share. The committee recommended easing land conversion rules and offering financial support to small farmers and FPOs to improve participation.
Component B, which subsidises off-grid solar pumps, has fared better. About 8.5 lakh pumps have been installed against 12.7 lakh sanctioned. It also recommended allowing higher-capacity pumps in regions with deep groundwater tables.
Progress under Component C, which covers grid-connected pump solarisation and feeder-level solarisation, remains uneven. Only 60,828 pumps have been sanctioned under the individual category.
The committee also flagged the high cost of power evacuation for farmer-owned solar plants under Component A. With substations often several kilometres away, farmers must build evacuation infrastructure without support. It recommended assigning this responsibility to DISCOMs.
It welcomed collateral-free loans under the Agriculture Infrastructure Fund but urged banks to simplify procedures so that small and marginal farmers can access credit. It also called for more R&D to reduce the cost of solar pumps and for incentives to expand domestic manufacturing.
PM Surya Ghar
The rooftop solar scheme has seen strong initial interest, with 1.38 crore registrations and 58.58 lakh approved applications as of August 2025. Installations, however, stand at only 17 lakh. Several states, including Bihar, Jharkhand, Tamil Nadu, Punjab and many Northeastern states, are lagging. The committee asked the Ministry to study reasons for poor participation and share best practices from states such as Gujarat and Maharashtra.
The report identified approval delays, subsidy issues, vendor shortages and installation bottlenecks as major obstacles.
The committee also expressed concern over the gap between domestic manufacturing capacity and rising demand. Despite 58 GW of module capacity, India continues to import modules worth more than USD 4 billion annually. It recommended expanding manufacturing across states and offering incentives for module and cell producers.
Model Solar Cities
The panel proposed creating ‘Model Solar Cities’ on the lines of ‘Model Solar Villages' to promote renewable energy use in urban areas. It also asked the ministry to explore integrating the rooftop scheme with PMAY and suggested providing 500-watt systems to PMAY beneficiaries.
